Indian benchmark indices opened higher on Friday, led by gains in ITC and IT stocks. However, concerns over foreign fund flows and the United States’ deteriorating fiscal outlook may cap further upside.
The BSE Sensex rose 600 points, or 0.75%, to 81,560, while the Nifty50 advanced 206 points, or 0.84%, to 24,815 around 10 am.
From the Sensex pack, ITC, Eternal, Infosys, Power Grid, UltraTech Cement, and HCL Tech were among the top gainers, rising up to 2%. Meanwhile, Sun Pharma, ICICI Bank, M&M, and IndusInd Bank opened in the red.
ITC shares jumped nearly 2% after the company posted higher quarterly profit on the back of strength in its mainstay cigarettes business and resilient rural demand.
Meanwhile, Sun Pharma fell 5% after the drug major reported a 19% YoY decline in consolidated net profit for the March quarter to Rs 2,154 crore, compared with Rs 2,659 crore in the same period last year.
On the sectoral front, the Nifty IT and FMCG indices gained nearly 1%, while the Pharma and Healthcare indices declined 0.9% and 0.7%, respectively. In the broader market, the Nifty Midcap100 and Smallcap100 indices edged up 0.3%.
Foreign portfolio investors (FPIs) sold Indian equities worth Rs 5,045 crore ($586.8 million) on Thursday, marking the third session of outflows in the past four days, according to provisional data.
Meanwhile, U.S. 30-year Treasury yields touched a 19-month high before easing, after the House of Representatives passed President Donald Trump's tax bill—expected to add about $3.8 trillion to federal debt over the next decade.
Global markets have come under pressure due to rising concerns over U.S. debt levels and Moody's recent downgrade of the country's credit outlook.
Higher Treasury yields tend to attract foreign capital to bonds, prompting outflows from equities in emerging markets like India.
Also read: Adani Group aims 20% Ebitda growth by FY26 driven by green energy, airport ventures
Experts View
"After the 14% pullback from the March lows, the market is struggling to find direction. It appears that the sustained FII buying, which played an important role in this rally, has run out of steam. The big FII selling on 20th and 22nd of this month indicates that the FIIs may again turn sellers if the global environment turns unfavourable," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"There are some global concerns arising out of the sharp rise in bond yields in the US and Japan. Particularly, the sharp spike in US bond yields with the 30-year yield touching 5.14 % and the 10-year yield at 4.52%, reflects concerns surrounding the US debt level and its fallout on global financial markets. It remains to be seen how this pans out," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a flat to positive opening, Nifty can find support at 24,600, followed by 24,500 and 24,400. On the higher side, 24,700 can be an immediate resistance, followed by 24,800 and 24,900."
Also read: Aegis Vopak Terminals plans Rs 2,800 crore IPO to reduce debt and expand operations
Global Markets
Asian shares made some tentative gains on Friday as beaten-down Treasuries found buyers after U.S. President Donald Trump's tax bill narrowly passed the lower house, although debt worries still lingered.
Nasdaq futures and S&P 500 futures were both flat.
The MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1% on Friday, but for the week it is still set for a loss of 0.4% after five weeks of gains.
Chinese blue chips and Hong Kong's Hang Seng were largely flat. Japan's Nikkei rose 1% as data showed Japan's core inflation accelerated at its fastest annual pace in more than two years in April.
FII/DII Tracker
The Foreign institutional investors (FIIs) sold equities worth Rs 5,045.36 crore on May 22, while Domestic institutional investors (DIIs) bought equities worth Rs 3,715 crore on the same day.
Crude Oil
Oil prices slipped on Friday, weighed down by a stronger U.S. dollar and the possibility that OPEC+ will further increase its crude oil output.
Brent futures fell 37 cents to $64.07 a barrel by 0015 GMT. U.S. West Texas Intermediate crude futures lost 39 cents to $60.81. Brent was down 2% on the week, and WTI was 2.7% lower.
Also read: Sun Pharma shares slide 5% as Q4 profit drops 19% YoY to Rs 2,154 crore
Rupee vs Dollar
The Indian rupee fell 15 paise to 86.10 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.3% to 99.66 level.
(With inputs from agencies)
The BSE Sensex rose 600 points, or 0.75%, to 81,560, while the Nifty50 advanced 206 points, or 0.84%, to 24,815 around 10 am.
From the Sensex pack, ITC, Eternal, Infosys, Power Grid, UltraTech Cement, and HCL Tech were among the top gainers, rising up to 2%. Meanwhile, Sun Pharma, ICICI Bank, M&M, and IndusInd Bank opened in the red.
ITC shares jumped nearly 2% after the company posted higher quarterly profit on the back of strength in its mainstay cigarettes business and resilient rural demand.
Meanwhile, Sun Pharma fell 5% after the drug major reported a 19% YoY decline in consolidated net profit for the March quarter to Rs 2,154 crore, compared with Rs 2,659 crore in the same period last year.
On the sectoral front, the Nifty IT and FMCG indices gained nearly 1%, while the Pharma and Healthcare indices declined 0.9% and 0.7%, respectively. In the broader market, the Nifty Midcap100 and Smallcap100 indices edged up 0.3%.
Foreign portfolio investors (FPIs) sold Indian equities worth Rs 5,045 crore ($586.8 million) on Thursday, marking the third session of outflows in the past four days, according to provisional data.
Meanwhile, U.S. 30-year Treasury yields touched a 19-month high before easing, after the House of Representatives passed President Donald Trump's tax bill—expected to add about $3.8 trillion to federal debt over the next decade.
Global markets have come under pressure due to rising concerns over U.S. debt levels and Moody's recent downgrade of the country's credit outlook.
Higher Treasury yields tend to attract foreign capital to bonds, prompting outflows from equities in emerging markets like India.
Also read: Adani Group aims 20% Ebitda growth by FY26 driven by green energy, airport ventures
Experts View
"After the 14% pullback from the March lows, the market is struggling to find direction. It appears that the sustained FII buying, which played an important role in this rally, has run out of steam. The big FII selling on 20th and 22nd of this month indicates that the FIIs may again turn sellers if the global environment turns unfavourable," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"There are some global concerns arising out of the sharp rise in bond yields in the US and Japan. Particularly, the sharp spike in US bond yields with the 30-year yield touching 5.14 % and the 10-year yield at 4.52%, reflects concerns surrounding the US debt level and its fallout on global financial markets. It remains to be seen how this pans out," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a flat to positive opening, Nifty can find support at 24,600, followed by 24,500 and 24,400. On the higher side, 24,700 can be an immediate resistance, followed by 24,800 and 24,900."
Also read: Aegis Vopak Terminals plans Rs 2,800 crore IPO to reduce debt and expand operations
Global Markets
Asian shares made some tentative gains on Friday as beaten-down Treasuries found buyers after U.S. President Donald Trump's tax bill narrowly passed the lower house, although debt worries still lingered.
Nasdaq futures and S&P 500 futures were both flat.
The MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1% on Friday, but for the week it is still set for a loss of 0.4% after five weeks of gains.
Chinese blue chips and Hong Kong's Hang Seng were largely flat. Japan's Nikkei rose 1% as data showed Japan's core inflation accelerated at its fastest annual pace in more than two years in April.
FII/DII Tracker
The Foreign institutional investors (FIIs) sold equities worth Rs 5,045.36 crore on May 22, while Domestic institutional investors (DIIs) bought equities worth Rs 3,715 crore on the same day.
Crude Oil
Oil prices slipped on Friday, weighed down by a stronger U.S. dollar and the possibility that OPEC+ will further increase its crude oil output.
Brent futures fell 37 cents to $64.07 a barrel by 0015 GMT. U.S. West Texas Intermediate crude futures lost 39 cents to $60.81. Brent was down 2% on the week, and WTI was 2.7% lower.
Also read: Sun Pharma shares slide 5% as Q4 profit drops 19% YoY to Rs 2,154 crore
Rupee vs Dollar
The Indian rupee fell 15 paise to 86.10 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.3% to 99.66 level.
(With inputs from agencies)
You may also like
'It was so unreal': Norwegian man wakes to find cargo ship with 16 crew in his garden
Man found dead at Liverpool's Adelphi hotel after police swarmed scene
Coronation Street's Gary Windass actor spent years being mistaken for co-star
'Spineless, gutless cowards': What FBI said on DC shooting suspect Elias Rodriguez
Muggers could lose 'short sharp shock' treatment - please tell me it's only temporary
